New Important Update for Small and Micro Companies: Mandatory P&L Filing from April 2027 ( UK)

Under the Economic Crime and Corporate Transparency Act, significant changes are on the horizon for UK companies. Effective 1 April 2027, all companies—regardless of size—will be required to file their accounts using commercial accounting software. This marks the end of paper-based and web-based account submissions to Companies House.

However, the most notable change for small and micro-entities is the new requirement to file Profit and Loss (P&L) statements as part of their statutory accounts.

🔍 Key Changes Include:

Micro-entities must file both a balance sheet and a P&L account.
Small companies must file a balance sheet, P&L account, directors’ report, and an auditor’s report (unless exempt).

Abridged accounts will no longer be permitted.

Claims for audit exemption must now include a specific directors’ statement.

The ability to shorten the accounting reference period is limited to once every five years, unless there is a valid reason.

🛠 What Does This Mean?

Companies House aims to enhance data quality, transparency, and security of filings. Most commercial software providers are already equipped to handle these requirements, so early preparation is encouraged.

📌Next Steps for Businesses:

Review your current filing processes and ensure compatibility with approved software.

Prepare for greater financial disclosure, particularly if your business hasn’t previously shared P&L information publicly.

Consult with your accountant or advisor to understand how these changes may impact your compliance obligations.